streaming at CNBC.com plus. >> Welcome back. And shares of Apple sliding to session lows today on this open AI deal to buy Jony Ive’s AI startup. Steve Kovach is here with more. And Steve I mean could it just been. Look the whole market sold off after the Treasury auction. Do you think it’s just that, or do you think this is really that. >> Was part of it, that you saw Apple take a even take a lower after this announcement came out. So let me explain why. Because Jony Ive, he’s been gone from Apple for almost six years now. He left back in 2019. And since then Apple has kind of been leaderless without there in that design group they had. There’s this woman named Evans Hankey who was running it right after Jony Ive, but guess what? He poached her and she’s now part of this company that’s going to be part of OpenAI. There are a number of other design executives at Apple, including someone named Tang Tan, who is also poached over. And what we’re learning today is that Jony Ive’s new group, he’s calling it IO, that’s working on devices. They they’re sounding like they have a breakthrough watching this video right now that Jony Ive put up with Sam Altman and they’re talking about he even mentions these people by name saying, hey, we have this breakthrough that can a new paradigm basically for hardware in this AI era. And this is coming from the guy Kelly, who invented the iPhone. >> Oh, totally. How could you have a breakthrough for AI? How can you have a hardware breakthrough for AI to do what exactly? >> And that’s what Sam Altman in this video was talking about. He says, you know, it’s really hard when you want to ask AI a question. You probably experience this. You have to open it up. You have to open up the web browser and type things in. And they’re kind of hinting at this kind of background device that is maybe always listening or always on. And it’s easier to ask questions. >> To device. And it’s easy for me on my phone, I just hit the ChatGPT app or I hit grok, and grok will say, if I start dictating, it goes, do you just want to talk to me? >> You don’t want another device, Kelly. But let me quote Eddy Cue, an Apple executive who was testifying in this Google trial a couple of weeks ago. A couple of weeks ago, he said, in ten years, you might not need an iPhone because of AI. He said that the iPhone company is saying you might not need an iPhone. And here we are, a company, OpenAI, saying we have a breakthrough here. We’re going to show you next year what this magical hardware product that the designer of the iPhone came up with. >> Look, there are a lot of people who would love to be untethered from their iPhone. Like there’s this societal hunger to say, like, you know, I know people who lock the device away on Friday nights and teens and kids and all the rest of it. So I guess from that point of view, I could see a market fit. This also comes as we’re hearing more about Apple’s stalled efforts on the AI front. >> Exactly. And so you got a double whammy here. You have Jony Ive legend right in the design hardware group. And then you have this AI miss from Apple where it overpromised and just did not deliver on artificial intelligence, and no clue when that is actually going to come to fruition. All those promises that they made at the same time, to your point about I’m tired of looking at my iPhone. I’m looking at too much. Jony Ive has talked about that. In fact, very recently has been saying, I kind of helped create this problem. Now I’m trying to fix it, and we’re going to see what that looks like next year. >> What i